Non profit

[Girard Van De Lay]

Possible new client has a booster club for a school they are registered as a non profit. Question is do they have to file a 990? This is all new for me so any help or guidence would be very helpful. Thank you in advance for any assistance or guidence.





Girard Van de Lay
importer/exporter

[Brad Imsdahl]

TTB, page 22-8 lists the filing requirements for exempt organizations. In general, if gross receipts are under $25,000, Form 990 does not have to be filed. There are exceptions. There is also a new law beginning in 2007 where organizations not required to file due to the $25,000 gross receipts rule are required to furnish IRS annually in electronic form, the legal name of the organization, address, ID number, and other administrative information.

[JCH]

Possible new client has a booster club for a school they are registered as a non profit. Question is do they have to file a 990? This is all new for me so any help or guidence would be very helpful. Thank you in advance for any assistance or guidence.


Girard Van de Lay
importer/exporter

Be careful that the organization has been granted tax-exempt status by IRS. Many organizations will tell you that they are "non-profit" when, in fact, their state has only given them an exemption from paying sales tax on items for resale. Ask the organization for a copy of the letter from the Service granting them tax-exempt status. Otherwise they'll need to apply filing form 1023 or 1024, which is the first step.

BTW - I thought Van de Lay Industries was now only in the export business, but maybe I missed an episode.

[Bill Tubbs]

clarify which year please

TTB, page 22-8 lists the filing requirements for exempt organizations. In general, if gross receipts are under $25,000, Form 990 does not have to be filed. There are exceptions. There is also a new law beginning in 2007 where organizations not required to file due to the $25,000 gross receipts rule are required to furnish IRS annually in electronic form, the legal name of the organization, address, ID number, and other administrative information.

Brad,

Could you please clarify when this filing starts... for an EO that uses a calendar year as its fiscal year and receipts < $25k, when will be the first time they will have to file with the IRS? Will they have to file in 2007 (for the 2006 year), or _for_ the 2007 year sometime in 2008?

Thanks,
Bill

[Brad Imsdahl]

TTB page 22-8 says, "New Law: Exempt organizations below filing requirements. Effective for notices and returns with respect to annual periods beginning after 2006, the new law requires organizations that are excused from filing an information return by reason of normally having gross receipts below a certain specified amount (generally under $25,000) to furnish to the IRS annually, in electronic form, the legal name of the organization....etc..."

So they are talking about the tax year beginning after 2006.

[Bill Tubbs]

Thank you.

TTB page 22-8 says, "New Law: Exempt organizations below filing requirements. Effective for notices and returns with respect to annual periods beginning after 2006, the new law requires organizations that are excused from filing an information return by reason of normally having gross receipts below a certain specified amount (generally under $25,000) to furnish to the IRS annually, in electronic form, the legal name of the organization....etc..."

So they are talking about the tax year beginning after 2006.

So, that will start a year from now -- so, nothing to file for this year.

Thanks Brad,
Bill

[Girard Van De Lay]

thanks

Thanks for your guidance